AirAsia chief says Chandilya not quitting

Chandilya had indicated he did not wish to renew his contract expiring later this month

AirAsia continues to deny that Mittu Chandilya, managing director of its India unit, had resigned.

Tony Fernandes, group chief executive officer, said appointing an MD was a decision for the board of directors, while also denying Chandilya having decided to step down.

These suggest efforts are on to retain Chandilya, who has indicated he does not wish to renew his contract from later this month.

Chandilya joined AirAsia India as its chief executive officer in 2013 and was elevated to MD last August. The elevation had coincided with a rejig in shareholding, with co-investor Tata Sons increasing their stake in the airline.

“The Tatas have been fantastic partners and are very committed to the airline,” Fernandes said, adding he’d met the former’s chairman emeritus, Ratan Tata, here on Sunday. He would not comment on the airline's third stake holder, Arun Bhatia, who has alleged Fernandes is controlling AirAsia India.

Fernandes said the airline had been cautious in its India expansion but would soon increase its fleet size to eight planes. “I hope to get to 16-20 planes in the not too distant future,” he added.

AirAsia has been unable to make an impact in this country and has also been unable to break even.

“I am a new boy and I have the entire airline industry in India against me,” Fernandes said. The airline was a target of the private airlines’ grouping, Federation of Indian Airlines, which moved court against grant of permit to AirAsia India.

“We are mosquitos, a little bit of irritating mosquito to some,” Fernandes said in a public interview earlier on Sunday.

He also expressed confidence with the airline’s operations. “Our load factor is great. This month, it’s in the high 80s. I am very proud of what Mittu and the team have done. We do an internal AirAsia summary on customer satisfaction. The airline with the highest rating within our group is India,” he said.